Transocean Is Drilling Hard

摘要

It's contract-renewal time for companies with oil-rig drillers for hire. But Houston's Transocean (RIG), which focuses on deepwater and harsh-environment services, has already secured contracts to 2010. Earnings could jump from $8.32 a share in 2007 to $14.14 this year and to $19.74 by 2010, says Kurt Hallead of RBC Capital Markets. He says the stock, now at 146.08, is undervalued based on its historical price - earnings ratio of 18. His 12-month target: 163.